Short-changed hospo staff infuriated over George Calombaris hire
A restaurant mogul, who hired George Calombaris, has left staff fearing they will never get back the millions they are owed after five of his venues went into administration.
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An under fire restaurant mogul hired high-priced celebrity chef George Calombaris as a consultant while owing hard working hospitality staff millions of dollars in unpaid superannuation.
KPMG banker turned Public Hospitality Group entrepreneur Jon Adgemis had infuriated his staff after five of his restaurants went into administration this week.
They fear they will never get their entitlements or superannuation payments, which are more than 12 months overdue.
An email from an angry staff member owed more than $30,000 by PHG highlighted Calombaris’ hiring as a symptom of the problems at the crumbling restaurant empire.
“It’s becoming evident to me that since George Calombaris joined that staff aren’t being paid, again,” the email sent to PHG said.
A string of staff have spoken out after New York lenders Muzinich pulled part of the funding on a complicated $400 million deal that was meant to save PHG.
Three companies that were part of PHG have been put into the hands of administrators Duncan Clubb and Andrew Sallway of BDO.
A creditors’ meeting will be held online next Wednesday, September 24.
Mr Adgemis was contacted for comment but did not respond before deadline.
However a source close to the entrepreneur said his bankers were to blame because he had a comprehensive plan to trade out of his financial problems.
Mr Adgemis had intended to pay all staff their correct wages and entitlements, but now there was doubt about how the administration would be able to honour those debts, the source claimed.
Mr Clubb and Mr Sallway are now running five Sydney restaurants in the group – The Strand Hotel and Oxford House in Darlinghurst, the Camelia Grove Hotel in Alexandria, the Norfolk Hotel in Redfern and the under construction Exchange Hotel in Balmain.
Mr Adgemis still controls at least 10 restaurants, including The Town Hall and The Lady Hampshire in Sydney and The Saint, Vine and The Clifton in Melbourne.
But former staff say they are worried they will not see any cash from the company, despite hanging on in the hope things could turn around.
“Higher interest rates and increasing construction costs were a major part of it, but they spent close to $200,000 on Christmas decorations for venues,” a former staffer said.
Mr Adgemis had told staff at a meeting attended by 50 people earlier this year that all staff superannuation would be paid as part of a registered payment plan with the Australian Taxation Office.
The ATO visited PHG offices in May to seek documents related to a $10 million tax bill, which was mainly linked to unpaid superannuation.
Months later he picked up Mr Calombaris after the former MasterChef judge had been told his services were no longer required at Victoria’s iconic Hotel Sorrento.
Mr Adgemis has also been listed as an executive producer on the film Oh Canada, which starred Richard Gere and Uma Thurman.
His fiancee Megan MacKenzie, who appeared in the film, walked the red carpet at the Cannes Film Festival in May.
Former staff said PHG had been chaotic in recent months, with front of house staff struggling to get enough wine and chefs struggling to source food.
A list of creditors for PHG companies revealed that alcohol suppliers CUB and Lion were owed money, along with food suppliers Metcash and IGA, the TAB and pokies company Utopia Gaming Systems.
Another former staffer said everyone tried to keep the restaurants afloat.
“We all thought it would turn around but I’m owed at least $20,000 in superannuation,” the staffer said.
Staff were now considering applying to the Fair Work Ombudsman to claw back some of their superannuation, while anyone made redundant can apply to the Fair Entitlements Guarantee scheme.
There were up to 150 staff linked to the collapsed companies and it was unclear if their roles were safe.
Mr Calombaris did not respond to questions.
stephen.drill@news.com.au
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